Q: Where do these home price and income numbers come from?

The tool uses city-level median home prices and household incomes based on census and survey data. This data typically lags current market conditions by 1-2 years. It represents city-wide medians, which can mask significant neighborhood variation.

Q: Is this mortgage, investment, or legal advice?

No. This tool provides general informational comparisons only. It is NOT mortgage advice (doesn't account for rates, terms, or qualification), NOT investment advice (doesn't predict appreciation or returns), and NOT legal advice. Consult qualified professionals for important financial decisions.

Q: How do my own numbers change the picture vs city medians?

If you enter your own target home price and income, the tool calculates your personal price-to-income ratio. This can be higher or lower than the city median depending on your situation. For example, if you earn above the median income but are targeting a median-priced home, your personal ratio would be better than the city average.

Q: Is a 6× ratio high?

Historically, a 3× ratio was considered affordable. A 6× ratio would be considered 'unaffordable' by traditional standards—homes cost 6 years of income. However, many expensive metros (San Francisco, New York, Los Angeles) now have ratios of 8× or higher. What's 'normal' depends on the local market.

Q: Why doesn't this account for mortgage rates?

The price-to-income ratio is a simple snapshot comparison that's been used for decades. It doesn't include mortgage rates because rates change frequently and affect monthly payments, not the underlying ratio. A comprehensive affordability analysis would include rates, down payment, taxes, and insurance.

Q: Can I use this to decide where to buy a home?

Use this as one data point among many. The ratio helps compare relative affordability between cities, but doesn't capture neighborhood variation, job markets, quality of life, or your personal financial situation. For major decisions, research local markets, get mortgage pre-approval, and work with local professionals.

Q: What if my city isn't in the database?

If your city isn't found, the tool uses U.S. average values as a fallback. You'll see a 'Using defaults' label. For accurate results, enter your own home price and income values in personal mode, or choose a nearby city that is in the database.

Q: How should I interpret comparing two cities?

When comparing cities, look at both the ratio and the absolute numbers. A city might have a lower ratio but higher absolute prices if incomes are also high. Consider tradeoffs: a city with a 4× ratio and $80k median income is different from one with 4× ratio and $50k income—same ratio, different lifestyle.

Question 1

What is a home price-to-income ratio?

Accepted Answer

The home price-to-income ratio is a simple measure of housing affordability. It divides the median home price by the median annual household income. A ratio of 5× means a typical home costs 5 times the typical annual income. Lower ratios generally indicate more affordable housing markets.

Question 2

What do 'stretched' or 'unaffordable' mean here?

Accepted Answer

These are affordability categories based on the ratio: Very Affordable (<3×) means homes cost less than 3 years of income. Affordable (3-4×) is the traditional benchmark. Stretched (4-5×) suggests buyers may need larger down payments or above-median incomes. Unaffordable (5×+) indicates significant barriers to homeownership for typical households.

Question 3

Where do these home price and income numbers come from?

Accepted Answer

The tool uses city-level median home prices and household incomes based on census and survey data. This data typically lags current market conditions by 1-2 years. It represents city-wide medians, which can mask significant neighborhood variation.

Question 4

Is this mortgage, investment, or legal advice?

Accepted Answer

No. This tool provides general informational comparisons only. It is NOT mortgage advice (doesn't account for rates, terms, or qualification), NOT investment advice (doesn't predict appreciation or returns), and NOT legal advice. Consult qualified professionals for important financial decisions.

Question 5

How do my own numbers change the picture vs city medians?

Accepted Answer

If you enter your own target home price and income, the tool calculates your personal price-to-income ratio. This can be higher or lower than the city median depending on your situation. For example, if you earn above the median income but are targeting a median-priced home, your personal ratio would be better than the city average.

Question 6

Is a 6× ratio high?

Accepted Answer

Historically, a 3× ratio was considered affordable. A 6× ratio would be considered 'unaffordable' by traditional standards—homes cost 6 years of income. However, many expensive metros (San Francisco, New York, Los Angeles) now have ratios of 8× or higher. What's 'normal' depends on the local market.

Question 7

Why doesn't this account for mortgage rates?

Accepted Answer

The price-to-income ratio is a simple snapshot comparison that's been used for decades. It doesn't include mortgage rates because rates change frequently and affect monthly payments, not the underlying ratio. A comprehensive affordability analysis would include rates, down payment, taxes, and insurance.

Question 8

Can I use this to decide where to buy a home?

Accepted Answer

Use this as one data point among many. The ratio helps compare relative affordability between cities, but doesn't capture neighborhood variation, job markets, quality of life, or your personal financial situation. For major decisions, research local markets, get mortgage pre-approval, and work with local professionals.

Question 9

What if my city isn't in the database?

Accepted Answer

If your city isn't found, the tool uses U.S. average values as a fallback. You'll see a 'Using defaults' label. For accurate results, enter your own home price and income values in personal mode, or choose a nearby city that is in the database.

Question 10

How should I interpret comparing two cities?

Accepted Answer

When comparing cities, look at both the ratio and the absolute numbers. A city might have a lower ratio but higher absolute prices if incomes are also high. Consider tradeoffs: a city with a 4× ratio and $80k median income is different from one with 4× ratio and $50k income—same ratio, different lifestyle.

Home Price-to-Income Ratio Comparison

Primary City

Calculation Mode

Compare Home Price-to-Income Ratios Across Cities

Understanding Home Price-to-Income Ratios

What Is the Price-to-Income Ratio?

Historical Affordability Benchmarks

How We Calculate Affordability Categories

What the Ratio Doesn't Capture

Limitations and Important Caveats

Frequently Asked Questions

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